Body Shop is set to reduce its workforce by 300 positions at its headquarters, and may close nearly half of its 198 stores in the United Kingdom, putting thousands of jobs at risk as the company battles for survival.

The management announced yesterday to the employees that seven Body Shop stores are closing immediately, adding that more store closures will follow. Concurrently, the number of employees at its offices in London and Littlehampton in West Sussex will be reduced by 40% to 400. It remains unclear if workers at the company's Littlehampton warehouse will also be affected.

The chain, which employs over 2,000 workers in the United Kingdom, entered administration last week, less than two months after being acquired by the German private equity firm Aurelius.

The seven stores closing today are located in Surrey Quays (London), Oxford Street near Bond Street (London), Canary Wharf (London), Cheapside (London), Nuneaton (Warwickshire), Ashford Town Centre (Kent), and Bristol Queens Road.

Body Shop was acquired by Aurelius for 117 million pounds (136.6 million euros), in a deal finalized in early January, after being agreed upon in November.

The future of the chain in Ireland, Europe, and Japan also hangs in the balance, as it has been sold to a group named Alma24, which has close ties with Aurelius.

The German branch of Body Shop, which has about 60 stores, entered bankruptcy last week, while in Belgium, where there are 16 stores, employees were told that bankruptcy is also imminent.